Top-level insiders such as CEOs and Chairmen tend to have a good understanding of their companies’ operating activities. If they’re buying company stock, it’s often a sign that the outlook for the business, and the share price, is attractive.

In this report, we are going to highlight some interesting legal insider trading activity from a top-level insider at TeamViewer AG (TMV:GR). TeamViewer is a German company that offers cloud-based products that support remote work and collaboration. Globally, it has more than 600,000 customers. The company is listed on Deutsche Börse’s Xetra and currently has a market capitalization of approximately €2.85 billion.

Insider Buying at TeamViewer

2iQ data shows that between February 8 and February 10, TeamViewer’s CEO and Chairman of the Executive Board Oliver Steil purchased 150,000 TMV shares at an average price of €14.64 per share. This buying activity cost the insider roughly €2.20 million and increased his holding to 2.47 million shares.

Investment Background

Mr. Steil has a background in investment management. Before being appointed CEO of TeamViewer in January 2018, he was Partner at international private equity firm Permira. There, he led Permira’s Portfolio Group, which works with global deal teams across all sectors to deliver value creation plans for Permira funds’ portfolio companies. Earlier in his career, he worked at McKinsey where he became a Partner with a focus on the telecommunications and technology sectors. Given his background, he is likely to have a good understanding of TeamViewer’s investment potential.

New Share Buyback Program

TeamViewer recently posted a solid set of Q4 and full-year 2022 results.

For the year, billings were up 16% year on year to €634.8 million while revenue was up 13% to €565.9 million. Earnings per share were up 46% year on year to €0.37.

On the back of these results, the group announced a new €150 million share buyback program.

Looking ahead, TeamViewer said that it expects the double-digit revenue growth to continue in 2023. Currently, it is anticipating top-line growth of between 10% and 14% for the year.

“We closed the year 2022 successfully and delivered in line with our guidance, even after discontinuing business in Russia and Belarus. TeamViewer is a highly profitable and cash-generative business. With a 46% EPS increase in 2022 we created significant value for our shareholders. Going forward, we expect continued high cash conversion. Therefore, in line with our existing capital allocation strategy, we announced a new share buyback program of up to EUR 150 million”, commented CFO Michael Wilkens.

In light of the guidance and the new share buyback program, we see the legal insider trade here as a bullish signal.

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